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  • Acquired 49% interest in the holding unit trust that owns the Woodside Building
  • Total consideration of $339 million
  • WALE 12.2 years at time of settlement

Dexus (ASX: DXS) today announced that it acquired 49% interest in a holding unit trust. That trust owns the new Woodside building in Perth, WA, located at 98 Mounts Bay Road. Also known as Capital Square Tower 1, Dexus made the acquisition for a total consideration of $339 million.

Secured off-market, the entire property was externally valued at $970 million as at 30 June 2021 and has $450 million of senior secured debt. A portion of Dexus’s contribution will be utilised by the holding trust as a new receivable loan to the co-owner, to be repaid in four years. The loan receivable is approximately $77 million.

“This acquisition enhances our portfolio with a high-quality landmark asset that we have secured at an attractive cash yield.”

Darren Steinberg, Dexus CEO

CEO of Dexus, Darren Steinberg said the property was “appealing for third party capital and will create an opportunity to grow our funds management business in the years ahead.”

The premium-grade office building was built in 2018, with a net lettable area of 60,635 square metres. Currently 100% occupied by Woodside Energy, the property had a weighted average lease expiry of 12.2 years at time of settlement.

The modernity of the building and the premium grade lends itself to being a particularly attractive asset, said Kevin George, Dexus Executive General Manager, Office:

“Capital Square is one of the leading workplaces in Australia, incorporating technologies and specifications supporting superior sustainability and customer experience outcomes.”

The acquisition price represents a 5.1% initial passing yield. It will be funded through debt facilities and will be accretive to Adjusted Funds From Operations and distribution per security for FY22.

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